The former President of People’s Savings Bank of Crawfordsville has entered guilty pleas in Federal Court for embezzlement and obstructing a bank examination. 52-year-old Russell Edwin Wagler of Wayland originated numerous straw loans involving existing customers at the bank and took the proceeds of those loans. As a result, Wagler misapplied bank funds and the bank suffered losses of approximately $426,000.

In addition, Wagler unlawfully obtained multiple unauthorized bonuses and unauthorized increased salaries. As a result of these unauthorized disbursements received by Wagler, the bank suffered losses of over $200,000 bringing the total bank loss to nearly $627,000 as related to Wagler’s activities.

The case was investigated by the Office of Inspector General for the Federal Deposit Insurance Corporation and the Federal Bureau of Investigation. Sentencing is scheduled for September 19. Wagler’s wife, Heidi Wagler, was sentenced to 41 months in federal prison in October for embezzling more than $1 million over nearly a decade.